This Guy Thinks Twitter Could See 20% in Gains

According to one guy, social media site Twitter may be ready to explode.

Founder of TradingAnalysis.com, Todd Gordon, has said he thinks the rally for Twitter is just starting.

Twitter shares ended the month of April as one of the best performers trading on the S&P 500.

“Twitter is a very good-looking chart post earnings. We saw some pretty impressive data following those earnings. Revenues were up 18% year over year and active users saw a pretty good increase, particularly in the U.S.,” said Gordon on Tuesday on CNBC’s “Trading Nation. ”

According to Gordon, Twitter could climb back from the losses it had through the last half of 2018.

“As we take a look at the charts here, you can see that there’s a significant gap right here from $44 down into below $40, so on the back of this earnings report,” said Gordon. “They’re trying to close that gap, which is a technical phenomenon that does often happen, so the gap closure will take place right around the $42.50 mark.”

It was last July that the company had gapped below $40 and has not closed above that price in nine months.
Gordon said, “As I see this gap close happen, I think provided the overall market can maintain its current trend, which is up as we’re pressing or at new highs in the indexes, we should be able to 1) close that gap and 2) retest these old highs right around the $48 mark.”

Disclaimer: We have no position in Twitter Inc. (NYSE: TWTR) and have not been compensated for this article.